Online Shoppers Cautious After Data Breaches

Published On June 25, 2014 | By Tom Huskerson | News and Analysis, Security

According to a survey  by USA Today 24% of people who regularly shop online have cut back or stopped altogether. The reason? Recent large data breaches has created caution among online shoppers.  According to the report 24% of those surveyed said they had recently stopped buying online because of concerns about the safety of information they might put online. Another 56% said they reduced the number of Internet sites they used or were sticking with larger, more well known companies they felt were safe.

The survey offered no breakdown of the African-American market and their reaction to data breaches and online shoping. But African-Americans do shop online. According to a AdWeek.com report nearly all African-Americans shop online and MinorityEye.com reported that online spending by black people has climbed to over $1.2 trillion by 2012.

The survey also found that users are now watching their bank accounts more closely. The survey showed that  55% of respondents said they were checking their banking, investment and credit card sites frequently for evidence of fraud.  

The poll indicated that people with less education and less income were more inclined to stop shopping online altogether.  Those with more  education with greater incomes reacted by changing passwords and reducing the sites they shop on.

The evidence indicates that credit and debit card fraud is starting to erode confidence in providers like VISA, MasterCard and AmericanExpress. Many consumers are using cards less often or simply abandoning them altogether after fraud incidents. This according to a global survey of 6,100 consumers by ACI Worldwide.

In the US, cards that have suffered a breach are less likely to be used. There is even a term for it, “back of the wallet” syndrome. American credit cards are replaced because of fraud or a data breach get the back of the wallet treatment even though most holders are protected from fraud with the losses being absorbed by the company. Around in one in four say they used fraud-hit cards less often than before, presumably because of the fear of a repeat incident.

Consumers in the U.S. and other countries seem less likely to lose confidence completely. But around 12 percent believe that providers should be doing more.

Breaking It Down

Why has no one asked the black community about online fraud? I searched all over the Internet with no luck. But that is really not important. What is important is that we understand that we are not immune from from fraud since we hold those same credit cards in our wallet.

Black people should spend a little time reading the fraud policies of the credit card providers. Understand the steps you have to take to report a fraud and make damn sure you check your bank and credit card statements frequently. Like every night, online, before, during or after watching Scandal!

Reducing the number of websites you shop on is a good idea. But a better idea is to reduce the information that website has on you. You should delete your credit card number from your profile if you have one with a shopping site. When you do an online purchase re-enter it every time you shop there. If the website asks you if they can the charge the credit card you have on file then answer no and use a different card and then erase them both if you can.

Black people don’t play when it comes to our money. How many time have you heard me say that? So we need to be just as aware and suspicious of the websites and card companies as others.

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About The Author

Tom Huskerson Bio Born in Richmond Virginia Tom Huskerson is a military veteran who settled in California after his discharge. Tom attended Santa Barbara City College where he began his writing career as a campus reporter. He worked as an intern news reporter for the Santa Barbara News-Press writing feature stories before moving on to San Francisco. At San Francisco State University Tom studied broadcast communications and began to focus on the Internet. He completed his graduate thesis on Internet advertising. Tom was the first student to ever focus on the Internet as a graduate student at San Francisco State University. After graduation he went to work for Zona Research in California’s Silicone Valley. As a research associate Tom supported senior analyst writing on the latest developments in the Internet industry. During the dot com boom Tom worked for several web businesses as a market researcher and analyst. As a writer and researcher Tom has authored various technical works including a training program for Charles Schwab security. Other projects included professional presentations on workplace violence and hiring security contractors. Tom has also written both fiction and non-fiction works and blogging for a travel website. He has published two books of short stories and completed two novels. Tom is the owner of Scribe of Life Literature and EbonyCandle.com. Tom is not the chief editor for the OnTechStreet. com. A news and information blog that focuses on tech news for African-Americans. The blog is the result of his desire to inform the African American community of the dangers and benefits of the cyber age. In his blog Tom reports on information security, new and analysis, scams and hoaxes, legal happenings and various topics that arise from the age of information. Tom believes that technology is a necessary tool for black people and they should know what is happening. Tom writes believing that techno speak is for the professional and that valuable information can be communicated using plain language. As a result he has embraced the motto, Less Tech, More Knowledge.

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